Boating: Buying A Boat: Insuring

It is best to have what is known as an "All Risk" policy, which will provide coverage for all types of losses except those specifically excluded in the policy. Typical exclusions may include wear and tear, gradual deterioration, marring, denting, scratching, animal damage, manufacturer's defects, defects in design, and ice and freezing.

How much should I insure my boat for?
You should insure your boat for the amount it would cost you to replace it with like kind and quality. This is called "Agreed Value" or "Stated Value" coverage, and in the event of a total loss, will pay the full insured amount. Beware of policies providing "Actual Cash Value" (ACV) coverage, which means the value of your boat will be replacement cost less depreciation.

What other coverages can I expect with my policy?
The following are standard coverages with standard deductibles and average limits: Medical payments, no deductible, $1,000 limit Personal effects, $250 deductible, $500 limit Uninsured boaters liability, no deductible, $10,000 to $300,000 limit Towing and assistance, no deductible, $500 limit Fishing equipment, $250 deductible, $1,000 limit

Who is allowed to operate my boat?
Most policies will allow anyone to operate your boat so long as you have given them permission. There are exceptions, of course, especially with high performance boats or personal watercraft so ALWAYS READ YOUR POLICY.

I live in an area where I can't use my boat in the winter, but my lender requires it be insured year-round. What can I do?
Ask your insurance agent if they offer what is commonly referred to as a "lay-up" discount. You have year-round coverage with a discount for the months your boat is in dry storage.

When I finance my new boat purchase how can I be certain all the insurance paperwork is in order so I can get my boat on time?
Most insurance agents will offer to fax a binder and lienholder certificate directly to your dealer or lender. This information provided by www.marinebankers.org